Ho Hup Sells RM13 Million Bukit Jalil Office Floors to Insas for Debt Repayment
Ho Hup Construction Company Bhd (KL:HOHUP) is making strategic capital moves, confirming the disposal of two commercial floors in Ho Hup Tower to substantial shareholder Insas Bhd for RM13 million. This real estate transaction, involving key entities within both groups, signals a dual objective — to improve cash flow and streamline balance sheets.
Set within Plaza Bukit Jalil, a fast-growing hub in the Klang Valley, the deal brings focus to Bukit Jalil’s emerging value for commercial real estate investment.
Details of the Transaction
The properties, located on Levels 5 and 6 of Ho Hup Tower, are being sold to Premium Realty Sdn Bhd and Sensecube Sdn Bhd, both wholly owned subsidiaries of Insas Bhd. The deal is facilitated through Ho Hup Jaya Sdn Bhd, a subsidiary of Ho Hup Construction.
The two floors were originally acquired by Ho Hup in 2016 from Bukit Jalil Development Sdn Bhd, the project’s master developer. Although the individual strata titles have not been issued, the properties are fully operational and located within a high-demand mixed-use commercial zone.
Purpose of the Disposal: Debt Reduction and Working Capital
Ho Hup announced that proceeds from the RM13 million sale will be allocated for:
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Partial repayment of borrowings
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General working capital
The company will register a book loss of RM600,000 from the disposal, a decision likely made to unlock liquidity rather than hold on for appreciation. This strategy is often deployed by listed developers and construction firms to preserve operational agility during fluctuating market conditions.
Related Party Transaction: Governance and Transparency
This deal is classified as a related party transaction (RPT). Key figures who sit on both sides of the deal have abstained from decision-making:
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Datuk Wong Gian Kui, executive director of Ho Hup and director of Insas, Premium Realty, and Sensecube
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Datuk Seri Thong Kok Khee, major shareholder of Insas
Such abstentions ensure compliance with governance standards set by Bursa Malaysia and are designed to protect minority shareholders from conflicted voting.
Why This Matters to Property Investors
Bukit Jalil has emerged as a commercial and lifestyle hotspot, with increasing demand for Grade B office space, retail outlets, and mixed-use developments. While the transaction reflects an internal reshuffle, it also signals confidence from Insas Bhd in Plaza Bukit Jalil’s long-term investment potential.
Key insights for investors:
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Plaza Bukit Jalil’s commercial properties are attracting institutional investors and major shareholders.
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RM13 million valuation across two floors (~RM6.5 million each) may serve as a reference for upcoming strata title valuations or future acquisitions in the area.
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Ongoing infrastructure growth in Bukit Jalil — such as proximity to Pavilion Bukit Jalil and highway linkages — enhances property value.
Market Impact: What’s Next?
The transaction is expected to complete by Q3 2025, pending the developer’s consent within a four-month window. Ho Hup’s ability to recycle assets into liquidity may also pave the way for new project launches or capital reallocation, especially as construction activity picks up nationwide.
On the market, Ho Hup’s shares closed at 16.5 sen, down slightly after the announcement. With a market cap of RM85.51 million, the group remains a mid-sized player with exposure to both property development and construction contracts.
Final Thoughts: Strategic Moves Amid Capital Discipline
The Ho Hup Insas Bukit Jalil transaction reflects how property players are actively repositioning portfolios and strengthening financials. It’s a reminder that commercial properties remain key strategic assets, not only for rental yield but also as capital-raising tools in times of need.
As more developers explore asset-light strategies, such transactions will likely become more frequent — giving rise to hidden opportunities for property buyers and investors eyeing prime strata offices across the Klang Valley.
